Showing posts with label
Competition Commission of India (CCI).
Show all posts
Showing posts with label
Competition Commission of India (CCI).
Show all posts
Competition
Commission of India is a statutory body constituted under the Competition Act,
2002. Government discharges such role as is assigned to it under the said Act.
Power to levy penalty is vested in the Commission under Section 27(b) of the
Act. This section authorizes the Commission to levy penalty of upto 10% of the
average turnover of the last three preceding years for abuse of dominant
position and anti-competitive agreements. Section 46, however, authorizes the
Commission to impose lesser penalty. To effectuate the power of Section 46, the
commission has framed Competition Commission of India (Lesser Penalty)
Regulations, 2009 to serve as guidelines in the matter.
This was stated by Minister of Corporate Affairs, Shri Arun Jaitley in a
written reply to a question in Lok Sabha today.
CCI imposes a
fine of Rs. 1 Crore upon Google for failure to supply information/ documents in
the investigations.
The
Competition Commission of India (CCI) has imposed a fine of Rs. 1 Crore upon
Google for failure to comply with the directions given by the Director General (DG)
seeking information and documents.
The order was passed on a reference made by the DG to CCI alleging inter alia
non-cooperation by Google in the pending investigations.
The
DG was investigating the informations filed by M/s Matrimony com private
limited and Consumer Unity & Trust Society (CUTS) against Google for
alleged abuse of market power in the relevant markets of online search and
search advertising.
CCI
also directed Google to cooperate with the investigations by furnishing such
other informations/ documents which may be required by the DG during the course
of further investigations.
The common order of the Commission was passed in Case Nos. 07 and 30 of 2012.
The
Competition Commission of India (CCI) has imposed a penalty of Rs. 18.38 crores
on Bengal Chemist and Druggist Association (BCDA) and its office bearers for
anti-competitive practices. This has been done vide a common order in Suo moto
Case No. 02 of 2012 and Reference Case No. 01 of 2013 filed by Dr. Chintamoni
Ghosh, Director, Directorate of Drugs, West Bengal.
In the reference filed by Dr. Ghosh, it was alleged that BCDA is inter alia
engaged in issuing anti-competitive circulars directing the retailers not to
give any discount to the consumers. The CCI after considering the entire
material had directed the Director General (DG) to cause an investigation into
the matter and to submit a report.
The CCI observed that the activities of BCDA inter alia to direct its members
to sell drugs only at their MRP is a palpable anti-competitive conduct which
cannot be justified on the ground that most of the members of the BCDA, would
be ruined if competitive forces are allowed to operate in the market. The CCI
accordingly concluded that the activities of the BCDA are in conflict with the
objects of the competition law as they cause restraint of trade, stifle
competition and harm the consumers.
Holding that BCDA and its District and Zonal Committees were engaged in
anti-competitive practices of directly or indirectly determining the sale
prices of drugs and controlling or limiting the supply of drugs through
concerted and restrictive practices, the CCI directed the BCDA and its office
bearers and executive committee members to seize and desist from indulging in
practices found to be anticompetitive in terms of the provisions of the Act.
After giving due consideration on the issue, the CCI decided to impose a
penalty on the BCDA and its those office bearers who were directly responsible
for running its affairs and play lead role in decision making @10% and on the
executive committee members @7%, of their respective turnover/income/receipts.
The BCDA has been further directed to file an undertaking within 30 days that
the CCI’s directions regarding seize and desist from indulging in
anticompetitive practices have been complied with. The amount of penalty
imposed was directed to be deposited within 60 of the receipt of the order. A
copy of the order is available on the website of CCI (www.cci.gov.in).
CCI imposes
Penalty of Rs.62.31 Crores on Three Companies for forming a Cartel in a Tender
for Indian Railways
Competition
Commission of India (CCI) has imposed a penalty of Rs.62.31 crore on three
engineering companies for violation of Competition Act concerning forming a
Cartel with respect to a tender for an Indian Railway undertaking. A penalty of
Rs. 1.91 crore has been imposed on M/s Stone India Ltd., Rs. 5.70 crore on M/s
Faiveley Transport Rail Technologies India Ltd and Rs.54.70 crore on M/s
Escorts Ltd. The penalty has been worked out on the basis of 2% of average
turnover of these companies for the three financial years from 2009-10 to
2011-12.
The penalty has been imposed after CCI took up a case of suo motto basis based
on information given by M/s Diesel Loco Modernisation Works (DLMW), a unit of
Indian Railways at Patiala, Punjab. The case relates to a DLMW tender wherein
the three vendors quoted identical rates for feed valves.
The companies have also been directed to “Cease and Desist” from indulging in
such anti-competitive conduct in future. Noting that public procurement is a
major concern of all competitive authorities in the world, CCI said that it
cannot ignore bid rigging in case of small procurement nor can consider small
procurements unimportant.
Competition
Commission of India (CCI) has imposed a penalty of Rs.3.81 crore on Dr.
L.H.Hiranandani Hospital, Mumbai for violation of Section 3 & 4 of the
Competition Act. The informant Mr. Ramakant Kini had approached CCI alleging
that the hospital had abused its dominant position in the area of stem cell
banks and did not allow the stem cell of the child to be collected by any other
service provider except M/s Cryobank with whom it had an exclusive agreement.
Consequent
upon detailed investigation by DG-CCI, the Commission had arrived at the
conclusion that exclusive arrangements between two undertakings do not accrue
any benefit to the consumer and are rather at the cost of consumer. Such an
agreement has anti-competitive effect in any market. CCI also considered it as
an abuse of dominance by Hiranandani Hospital and the conditions put up on its
patients that in case one had to avail stem cell banking system, they will only
have to avail services of Cryobank, as abusive and violative of Section 4 of
the Competition Act. CCI, under Section 27 of the Act, has passed the following
order:-
“(a) The agreement of OP hospital with
Cryobank for the years 2011-12 and 2012-13 are declared null and void.
(b) The OP hospital
shall not enter into a similar agreement with any stem cell bank in future.”
These
directions have to be complied with immediate effect.
The
Commission has also imposed a penalty of Rs. 3,81,58,303/- calculated at the
rate of 4% of the average turnover of OP hospital. The penalty is to be
deposited within 60 days of receipt of the order.
Competition
Commission of India (CCI) has imposed a penalty of Rs.55.42 lakhs on Chemists
and Druggists Association, Ferozepur (CDAF) and its office bearers. Penalty has
been imposed on the basis of information filed by M/s Arora Medical Hall,
Ferozepur alleging contravention of the provisions of Competition Act. The
informant had alleged that the CDAF had imposed conditions to take an NOC and
Letter of Credit from the CDAF. Further, CDAF directed its members to stop
purchasing goods from the informant vide their resolution on 26.5.2012 and
directed all the wholesalers to stop dealings with the retailers who continued
to purchase goods from the informant. The informant alleged that such actions
were creating barriers to new entrants in the market but also driving existing
competitors out of the market.
After
a detailed investigation, CCI came to the conclusion that the acts of the CDAF
were anti-competitive and the conduct needs to be penalized to act as a
deterrent in future for any other association/office bearer who engaged in such
type of actions.
The
Commission has imposed the penalty on the basis of 10% of the average
income/receipts on the Association and its office bearers amounting to a total
of Rs.55.42 lakhs. CCI has also directed CDAF and its office bearers to “Cease
and Desist” from indulging in such anti-competitive practices. The Commission
also directed CDAF to file undertakings to this effect within a period of 30
days from the date of receipt of the order.
The Commission directed the opposite parties to deposit the penalty amount
within the 60 days of receipt of the order.
Competition
Commission of India (CCI) has ordered investigation under Section 26(1) of the
Competition Act in respect of information filed by M/s Wardha Power Company
Limited (Informant) against Western Coalfields Limited (WCL) and Coal India
Limited (CIL). The Informant had alleged that WCL and CIL have abused their
dominant position and the various clauses of the Fuel Supply Agreement were
discriminatory.
The
Commission is of the opinion that prima facie case was made out against WCL and
CIL for investigation for contravention of Section 4 of the Competition Act and
it is a fit case to be investigated by DG. The report of DG is to be submitted
within 60 days from receipt of the order.
The
Commission has in the past also ordered investigations against Coal India
Limited and its subsidiaries for their alleged anti-competitive conduct in
similar Cases no. 05/2013, 07/2013, 37/2013 and 44/2013.
Competition
Commission of India (CCI) imposes penalty on Tamilnadu Film Exhibitors’
Association
· Competition
Commission of India (CCI) has imposed a penalty of Rs.41,393/- on M/s Tamilnadu
Film Exhibitors’ Association (TNFEA) (now known as Tamilnadu Theatre Owners’
Association).
· The
penalty has been imposed in respect of information filed by M/s Reliance Big
Entertainment Pvt. Ltd (RBEPL) alleging contravention of the provisions of
Section 3 and 4 of the Competition Act.
· In
its information, M/s RBEPL has alleged that it was entitled to distribute a
film titled ‘Osthe’ in Tamil language that was a remake of Hindi film Dabang.
However, M/s TNFEA boycotted this film with an effort to secure a claim of its
members against a third party M/s Sun TV.
· CCI
in its investigation concluded that the decisions and conduct of TNFEA in
respect of the boycott against film ‘Osthe’ and other films dealt by Sun TV
were in contravention of the provisions of Section 3(3)(b).
· The penalty of Rs.41,393/- has been imposed @ 10% of the average turnover of
the Association for the relevant last three years.
· This
penalty is to be deposited within 60 days of receipt of this order.
· CCI
has also directed M/s TNFEA to cease and desist from indulging in such
anti-competitive conduct in future.
Competition Commission of India
(CCI) has ordered investigation against M/s ACI India, M/s ACI Worldwide and
M/s ACI Asia Pvt. Limited (Respondents) on the allegations of contravention of
provisions of Competition Act.
CCI had issued the order under
Section 26(1) of the Competition Act, 2002 on the basis of information filed by
M/s Financial Software and System Private Limited (Informant). The informant has alleged that ACI has abused
their dominance by imposing unfair conditions in the purchase or sale of goods
or services through exclusive supply arrangements, limiting and restricting the
technical or scientific development in the market etc.
After initial examination, CCI has
observed that Prima facie the conduct of the respondents amounts to ‘tie-in
arrangement’ and ‘refusal to deal’. Such
agreements are also likely to have appreciable adverse effect on competition
looking at the market share and market size of the enterprise in question.
The Director General, CCI shall
complete the investigation within a period of 60 days from the date of the
order. CCI has also made clear that
nothing stated in this order shall tantamount to an expression of final opinion
on the merits of the case and the DG shall conduct the investigation without
being influenced by any observations made in the present order.
The
Competition Commission of India (CCI) has amended the Combination Regulations
with a view to further simplify the filing requirements and bring about greater
certainty in the application of the Act and the Regulations.
The
provisions of the Competition Act, 2002 (“Act”) relating to regulation of
combinations have been in force with effect from 1st June, 2011.
These
were subsequently amended on 23.2.2013 with a view to relax certain
requirements in regard to filings by corporate entities for combinations that
are unlikely to raise adverse competition concerns.
The highlights of the major changes in the Combination Regulations are as
under:
- The
Regulations now do not require a notice to be filed for acquisition of
shares or voting rights of companies if the acquisition is less than five
percent of the shares or voting rights of the company in a financial year,
where the acquirer already holds more than twenty five percent but less
than fifty percent of the shares or voting rights of the company.
-
In a step which would significantly reduce compliance requirements, the
provision for giving notice is now dispensed for mergers/amalgamations
involving two enterprises where one of the enterprises has more than fifty
per cent (50%) shares or voting rights of the other enterprise. Similarly,
the requirement of giving notice is also dispensed for merger or
amalgamation of enterprises in which more than fifty per cent (50%) shares
or voting rights in each of such enterprises are held by enterprise(s)
within the same group.
-
To provide clarification on the nature of intra-group acquisitions for
which notice has to be given, Item 8 of Schedule I is amended to state
that the relaxation would not apply where the acquired enterprise is
jointly controlled.
-
To avoid repetition and to have one category of exemption for acquisition
of certain current assets like stock-in-trade, raw materials etc., Item 5
and Item 9 of Schedule I are clubbed and provided as one category under
Item 5.
Action on
Anti-Competitive Agreements by the Competition Commission of India
During
the last three years, the Competition Commission of India (CCI) has passed
Cease and Desist Orders in 14 cases; and Cease and Desist Orders along with a
penalty of Rs.7,354.11 crore in another 14 cases of
anti-competitive agreements. Giving this
information in written reply to a question in the Rajya
Sabha today, Shri Sachin Pilot, Minister of Corporate Affairs, said that the
parties against whom such Orders were passed belonged to the following States:
-
|
Sl. No
|
State
|
Sl. No
|
State
|
|
1
|
Andhra Pradesh
|
10
|
Maharashtra
|
|
2
|
Bihar
|
11
|
Madhya Pradesh
|
|
3
|
Delhi
|
12
|
Orissa
|
|
4
|
Goa
|
13
|
Punjab
|
|
5
|
Haryana
|
14
|
Rajasthan
|
|
6
|
Himachal
Pradesh
|
15
|
Tamil Nadu
|
|
7
|
Jharkhand
|
16
|
Uttar Pradesh
|
|
8
|
Karnataka
|
17
|
West Bengal
|
|
9
|
Kerala
|
|
|
